Health Care Reform

Health Care Reform

With the new health care reform there are some questions for business owners. One question is if you have over 50 employees can you face health care reform penalties even if you do offer health insurance coverage in 2014. Yes. You have to offer “minimum essential coverage at an affordable rate”. If you do not then you may face health care reform penalties.

Now that that is answered let’s look at what exactly minimum essential coverage is. This refers to the health insurance plan design; the health insurance carrier must pay for at least 60% of treatment costs. The “affordable rate” coverage is what the employer contributes to the plan. The federal law requires that the organization contributes enough that the employee’s portion of the premium is no more than 9.5% of the employee’s total household income.

 Health insurance is something many people do not want to go without but a lot of people do because it is too expensive. If something happens where you need a doctor the bills can pile up. So putting them side by side it would be cheaper and you’d be better off with some type of health insurance coverage. Contact us today so we can help you get started.